Tweet

Can The Founder Ever Leave The Company He or She Founded?

Guest post by: Ron Edmondson

Article Overview: Companies are launching into their niche faster than ever before. The information age and technology allows for growth at a pace unknown in previous generations. Much of that growth is a direct reflection on the personality and passions of the founder who is seen in the public as the chief representative of the company. I’m not sure this has always been the case.

Can The Founder Ever Leave The Company He or She Founded?

Starbucks Howard Schultz is back in charge at Starbucks. He tried to leave and came back earlier this yearto attempt to reverse the suffering the company is experiencing. Dell’s Michael recently returned to help steer Dell back to health. Other companies, who have founder with lesser known names,have recently seen theirfounding fathers return to thehelm of leadership.Take a look at companies like Sun Microsystems, Novell, and Vonage who have seen their founders return.

Bill Gates, who needs no introduction to the world, spent his last day as CEO of Microsoft yesterday. His teary departure to lead the Gates Foundationhas been much anticipated and is noble considering the difference he hopes to now make in the world. The question is will he be able to enjoy “retirement” or will he be needed again at Microsoft’s top spot? The answer to that question remains to be seen.

I have a theory that companies today will face this dilemma more than companies founded in years past.Could it be that because companies today begin with such an imprint of their founder in their DNA that it is becoming more difficult to pass the reigns of the top spot to another person?Study Starbucks and you have to study Howard Schultz. (He even wrote a book about it.)Look at Dell computers and you see Michael Dell all over the company philosophy. (Even in the name!)Companies today are very much an impression of their founders.Google’s corporate “fun” environment IS Larry Page.Every time I’ve heard Mark Zuckerberg, founder of Facebook, interviewed he describes the social network with a passion that only a founder could exhibit.

Companies are launching into their niche faster than ever before.The information age and technology allows for growth at a pace unknown in previous generations.Much of that growth is a direct reflection on the personality and passions of the founder who is seen in the public as the chief representative of the company.I’m not sure this has always been the case.

As we consider this phenomenon within corporate America, I can’t help but wonder if there are implications here for churches as well.Doesn’t Northpoint have the personality of Andy Stanley?Lifepointcertainlyembodies the imprint of Craig Groeschel.The same is true for Fellowship’s Ed Young, Jr.You can add your own to this list.What will happen when these leaders attempt to retire?Will we see them return as corporate founders have had to do?Again,the answer to that question remains to be seen.

This thought process does make me consider a few things organizations may want to consider in their beginning years:

1.Organizations must be thinking transition from the founding of the organization.

2.Organizations must be careful not to elevate people or personalities over vision.

3.Organization may want consider easing a leader out gradually, rather than allowing a fast exit of the founder.

Related Articles
  Hey, What if the Founder Gets Hit By a Bus? Nada
  Top tips from successful women entrepreneurs
  Lesson #3: It Takes Guts to Get to Where You Want to Go
  Be Wary of the Passionate Franchise Founder
  The Men Behind the Microchip: The Early Years of Intel Founders Robert Noyce and Gordon Moore
  From the Ski Slopes to the Soda Stands: The Early Years of Peter van Stolk
  Steve Jobs Apple
  Gaming His Way To The Top: Hawkins Makes It Big, Twice
  Finding Success in the Great Outdoors: How Bean Lived his Dream
  From Student to Shoe Salesman: The Early Years of Zappos’ Tony Hsieh
  The Telecommunications Tycoon: Terry Matthews Takes Off
  Open the Floodgates!
  Steve Jobs Bio
  Excellent Story on the Failure of Monitor110
  The Video Game King: The Early Years of Trip Hawkins
  Mistakes Clients Make When Choosing an Agency
  Market Your Company With Your Voice Mail Message
  Afrokicks Tells Benin Mwangi How to Rep Africa
  Finding Success in Stocks: Schwab Launches His Company
  Staging Diva Graduate helps home sell at first open house

Article Tags: Founder, Leadership, Tranistion



Related Forum Posts
Entrepreneurs to profile - Here are my suggestions: Howard Schultz, Founder of Starbucks Jason Jiang, Founder of Focus Media
How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
Re: How to finance your independent movie - Hi, The video doesn't come up with its own URL... But it's the very bottom video on the page. Here's the description of it: Financing, Production and Social Impact of Feature Films Host- Carol Atwood - Founder, Spartacus Media Enterprises Panelists: Bill Johnson - Co-Founder and Partner, Inferno Distribution Steven Haft - Producer, Media Consultant Michael Goorjian - Actor, Producer, Writer
Re: Twitter Censorship? - I haven't heard that but it wouldn't surprise me. Seems like there are people/governments/sites all over the place trying to get internet censorship. Personally I think it's a bad idea. Once you open that can of worms then where does it stop? Leave it be and see what it can truly grow into!
Re: How should i promote a new website? - I forgot to mention another good one. Leave you business cards (with your website on it) in public places that you go. Even in bathrooms on the sink or on top of the hand blow dryer. People are curious as to what it might say. Also make sure you put something on it that will tell them what you sell. Not just the name of your business.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Using your social media profiles to drive traffic

Living on The Edge of Chaos...

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.